The grain markets have had an interesting run lately. With the release of the USDA report on March 31st, it appeared initially to have a bullish result on corn, wheat and soybeans. However only the soybean market really moved. And moved it did!!

The corn market (basis May) on March 31st triggered a buy signal just above $4, but over the following days the market only rallied to $4.075. On April 13th we received a sell signal. There is major support between $3.63 and $3.73. Ultimately the market could fall to $3.41 to $3.51, thus testing and possibly taking out the lows of late February.

Wheat (basis May) gave a buy signal on April 1st and offered a small rally when it topped at $5.72. On April 13th we received a sell signal and the market has since been caught in a trading range between $5.13 to $5.30. The market hit our initial resistance of $5.71. If the rally does continue, we would target the next leg up at $5.95 to $6.19 with a major resistance of $6.45. The market is currently holding in its major support of $5.10 to $5.15. If this area is broken the next support level is $5.05 to $4.94

On April 2nd we received a buy signal in soybeans (basis May) and the market never looked back as it rallied a $1. Since making a bottom on March 2nd the market has rallied about $2.35. As we noted on April 3rd, soybeans could rally to the $6.47 area. Now that it has rallied into this area we could see some consolidation. Initial support for the market is found around $10.43 to $10.23. If the market does continue to rally our next major resistance area is $10.73 with $11.39 as the next major resistance level. If the market breaks below $10.10 we could be seeking the next major support level about $9.60.

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